Auto Insurance Industry May Get Second Shot for Continuous Coverage Proposal
Californians may get the chance to vote on whether all insurers should be able to use a driver's previous coverage history to help determine premiums.
(EMAILWIRE.COM, August 16, 2011 ) California motorists could get premium adjustments based on their previous coverage status if a proposed ballot measure goes before voters next year.
If the “continuous coverage” measure gets on the ballot and wins the public’s approval, it would mean Californians who get an auto insurance quotes comparison from competing companies could see higher premiums if they were previously uninsured and lower premiums if they already had a policy.
Supporters point out the change would reward drivers for being continuously covered. Critics, meanwhile, contend the proposal would unfairly increase rates for those who have not been insured, even if they did not own a car.
Existing California law allows insurers to offer discounts to consumers who are renewing or buying new policies as long as they are already insured, but that coverage must have been issued by the same company or an affiliate.
The American Agents Alliance—the trade group that is pushing for the change—said in a June letter to state regulators that the initiative’s goal is to increase access to affordable protection through discounts for drivers “who continuously maintained auto insurance coverage, even if changing their insurance company.”
The attorney general last week issued a title and summary for the proposed initiative, clearing the way for backers to begin the signature-gathering process.
Source: http://ag.ca.gov/cms_attachments/initiatives/pdfs/i944_title_and_summary_11-0013_final.pdf
The proposal is similar to an unsuccessful measure on the June 2010 ballot that would have enabled insurers to offer discounts to previously covered motorists. But the current proposal has an expanded definition of continuously covered drivers that includes those who have had only short lapses and those who have had lapses due to military service, injury or unemployment.
Critics of both proposals have said they would effectively punish new drivers, low-income families who have been unable to afford a vehicle or a policy, and other consumers.
Santa Monica-based Consumer Watchdog said in a news release last week that the current proposal “attempts to trick voters into giving insurance companies new power to increase premiums and punish consumers.”
The attorney general’s summary of the proposal makes clear that, while it would provide for discounts, it would also enable insurers to increase premiums for those without previous coverage.
To read more about this and other car coverage issues, go to http://www.onlineautoinsurance.com/quotes/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.
If the “continuous coverage” measure gets on the ballot and wins the public’s approval, it would mean Californians who get an auto insurance quotes comparison from competing companies could see higher premiums if they were previously uninsured and lower premiums if they already had a policy.
Supporters point out the change would reward drivers for being continuously covered. Critics, meanwhile, contend the proposal would unfairly increase rates for those who have not been insured, even if they did not own a car.
Existing California law allows insurers to offer discounts to consumers who are renewing or buying new policies as long as they are already insured, but that coverage must have been issued by the same company or an affiliate.
The American Agents Alliance—the trade group that is pushing for the change—said in a June letter to state regulators that the initiative’s goal is to increase access to affordable protection through discounts for drivers “who continuously maintained auto insurance coverage, even if changing their insurance company.”
The attorney general last week issued a title and summary for the proposed initiative, clearing the way for backers to begin the signature-gathering process.
Source: http://ag.ca.gov/cms_attachments/initiatives/pdfs/i944_title_and_summary_11-0013_final.pdf
The proposal is similar to an unsuccessful measure on the June 2010 ballot that would have enabled insurers to offer discounts to previously covered motorists. But the current proposal has an expanded definition of continuously covered drivers that includes those who have had only short lapses and those who have had lapses due to military service, injury or unemployment.
Critics of both proposals have said they would effectively punish new drivers, low-income families who have been unable to afford a vehicle or a policy, and other consumers.
Santa Monica-based Consumer Watchdog said in a news release last week that the current proposal “attempts to trick voters into giving insurance companies new power to increase premiums and punish consumers.”
The attorney general’s summary of the proposal makes clear that, while it would provide for discounts, it would also enable insurers to increase premiums for those without previous coverage.
To read more about this and other car coverage issues, go to http://www.onlineautoinsurance.com/quotes/ where you will find informative resource pages and a free-to-use quote-comparison generator that consumers can use to get sample premiums for many vehicle makes and models.
Contact Information:
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
Online Auto Insurance, LLC
Gregor McGavin
Tel: 909-784-2476
Email us
This is a press release. Press release distribution and press release services by EmailWire.Com: http://www.emailwire.com/us-press-release-distribution.php.
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